Boulder Issue 2A: Voters approve carbon tax extension by wide margin

Boulder voters approved a five-year extension of the city's innovative carbon tax, which levies a tax on energy use and uses the proceeds to pay for energy efficiency and renewable energy programs.

With 64 percent counted out of an anticipated 173,890 ballots cast countywide, 82 percent of city voters had voted to extend the tax, and 18 percent had voted to allow it to expire in March 2013.

First approved by voters in 2006, the Climate Action Plan tax, or carbon tax, generates around $1.9 million for the city.

The tax rate varies by usage and sector. The average annual cost to residents is $21. The average annual cost to businesses is $94, and for industrial customers, it's $9,600.

City Manager Jane Brautigam said in a news release that the results confirm the community's commitment to the environment.

"The Boulder community has once again proven its commitment to reducing greenhouse gas emissions and mitigating climate change," Brautigam said. "Boulder remains a strong steward of the environment, and I'm proud of our city for being a leader in the region, the state and the nation."

The tax pays for energy-efficiency and renewable-energy programs, including rebates, credits and "energy audits" for homeowners and businesses.

An analysis of the program's spending found that 41 percent went to services delivery -- a category that includes rebates, incentives and energy audits, as well as consultant services to help the city develop its programs.

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Another 32 percent went to personnel, and 12 percent went to education and marketing. The rest was spent on overhead and transportation, with an unspent balance of $392,023.

City officials said they plan to increase the focus on the commercial sector, which accounts for roughly 60 percent of the city's greenhouse gas emissions.

The city is now running a pilot program to get businesses to track their energy use more, and city officials say "benchmarking" and reporting likely will become mandatory next year. It's also possible the city will mandate that businesses reach certain energy-efficiency standards.

The city now uses CAP money to support the SmartRegs program, which mandates energy-efficiency standards for rental housing.

If the CAP tax were not renewed, Boulder would not have money to provide rebates and incentives to help landlords reach those mandates, officials said.

Boulder officials also said it would be difficult to continue reducing greenhouse gas emissions at a steady rate if they don't have access to CAP tax funds to encourage upgrades.

Boulder is also researching the feasibility of creating a municipal energy utility that would use more renewable energy than Xcel now does. If the city does move forward with municipalization, future energy-efficiency programs could be paid for through utility rates.

However, it's not at all certain that the city will form a municipal energy utility, and Boulder officials said they would lose valuable momentum if they cannot continue with programs funded by the CAP tax.

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